NYSE$BCO

Brinks Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong growth in revenue, operating profit, adjusted EBITDA and net income.

Brink's reported a strong recovery in the second quarter of 2021, with total revenue up 27% and organic growth of 15%. The company's operating profit increased to $73 million, and adjusted EBITDA rose by 39% to $166 million. EPS also saw significant growth, with GAAP EPS up 74% to $0.47 and non-GAAP EPS up 62% to $1.18.

  • Total revenue increased by 27%, driven by 15% organic growth and acquisitions.
  • GAAP operating profit was $73 million, compared to a loss in the previous year, while non-GAAP operating profit increased by 51% to $111 million.
  • GAAP net income was $24 million, an 85% increase, and adjusted EBITDA rose by 39% to $166 million.
  • GAAP EPS increased by 74% to $0.47, and non-GAAP EPS increased by 62% to $1.18.

Headline financials

Total Revenue

$1.05B

Previous: $826M+27.0%
EPS (adj)

$1.18

Previous: $0.67+76.1%
Capital Expenditures

-$73.2M

Previous: -$53.9M-35.8%
Free Cash Flow

-$49.3M

Previous: -$41M-20.2%
Net Income

$23.9M

Previous: $12.9M+85.3%
Operating Income

$73.3M

Previous: -$1M+7430.0%
Gross Profit

$230M

Previous: $142M+61.6%
Cash & Equivalents

$662M

Previous: $531M+24.5%
Total Assets

$5.58B

Previous: $4.77B+16.9%
Stock-Based Comp

$11.1M

Previous: $5.4M+105.6%

Revenue & EPS history

Brinks · Revenue · Quarterly

$1.05B

Q2 2021+27%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company expects full-year 2021 revenue growth in the mid-to-high teens and earnings to be around the mid-point of the guidance range, reflecting higher margins. Preliminary targets for 2022 include adjusted EBITDA growth in the mid-teens to a range between $785 million and $825 million, and free cash flow growth to a range between $350 million and $400 million.

Tailwinds

  • Continued revenue recovery in the second half of 2021.
  • Full-year revenue for 2022 is expected to exceed comparable 2019 pre-Covid revenue levels.
  • Adjusted EBITDA growth in the mid-teens is expected for 2022.
  • Free cash flow growth to a range between $350 million and $400 million is expected for 2022.
  • Margin expansion is expected to continue into 2022 with new digital solutions.

Headwinds

  • Unexpected extension of pandemic-related shutdowns, most notably in Europe and Latin America.
  • Uncertainty regarding the future impact of the pandemic.
  • Full-year 2021 revenue growth expected in the mid-to-high teens, which is in the lower half of the guidance range.
  • Potential impact from highly inflationary accounting on Argentina operations.
  • Potential Non-GAAP adjusting items for which the timing and amounts are currently under review, such as future restructuring actions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+20.9%

Q2 2020

Best reaction

-14.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+0.7%-3.3%
Q4 2025-14.4%-8.8%-25.7%
Q3 2025+7.6%+7.5%+10.2%
Q1 2025-5.3%-6.9%-10.4%
Q4 2024+1.9%-6.3%-7.7%
Q3 2024-3.3%-3.7%-9.0%
Q2 2024-5.6%-7.4%+4.2%
Q1 2024+6.2%+6.9%+11.8%
Q4 2023+3.7%+4.5%+16.3%
Q3 2023+3.5%+4.9%+18.7%
Q2 2023-1.5%-0.2%+3.8%
Q1 2023+4.2%+4.1%+13.8%
Q4 2022+6.7%+7.2%+3.8%
Q3 2022-3.2%-0.9%+0.9%
Q2 2022+4.4%+2.7%-0.5%
Q1 2022+0.2%+0.7%+8.3%
Q4 2021+3.3%+2.2%-2.2%
Q3 2021+16.2%+15.6%+6.8%
Q2 2021-3.8%-4.6%-1.4%
Q1 2021+4.3%+3.7%-2.0%
Q4 2020+5.8%+1.1%+3.9%
Q3 2020-2.5%+5.5%+57.1%
Q2 2020+20.9%+13.9%+31.1%
Q1 2020-11.6%-11.8%+0.6%
Q4 2019-6.5%-4.6%-10.5%
Q3 2019-0.8%+2.5%+4.2%
Q2 2019+4.7%+4.6%-18.4%
Q1 2019-3.3%-1.3%-2.5%
Q4 2018+0.9%+3.7%-2.3%
Q3 2018+8.2%+5.5%+4.1%
Q2 2018+2.4%+0.5%-1.1%
Q1 2018+0.5%-1.1%-7.2%
Q4 2017-10.1%-9.3%-10.9%
Q3 2017-8.9%-9.9%-5.1%
Q2 2017+12.9%+10.5%+6.5%
Q1 2017+5.5%+3.9%+7.2%
Q4 2016+16.1%+22.5%+21.2%
Q3 2016+8.7%+5.8%+20.6%
Q2 2016+2.6%+3.6%+15.8%
Q1 2016-13.1%
Q4 2015-0.1%
Q3 2015-2.8%
Q2 2015+3.5%
Q1 2015+15.6%
Q4 2014+7.4%
Q3 2014-7.2%
Q2 2014+2.7%
Q1 2014+1.0%
Q4 2013-1.3%
Q3 2013+9.2%
Q2 2013-1.2%
Q1 2013+6.1%
Q4 2012-8.6%
Q3 2012-7.2%
Q2 2012+1.8%
Q1 2012+18.1%
Q4 2010+2.0%
Q4 2011+2.0%
Q3 2011-5.3%
Q2 2011+1.9%
Q1 2010-5.9%
Q1 2011+0.1%
Q4 2008-1.1%
Q3 2010+2.8%
Q3 2009+2.8%
Q2 2010-1.5%
Q2 2009-1.5%
Q4 2009-1.5%

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